The Canadian dollar strengthened for a third day after a report showed Canada’s gross domestic product expanded for a fourth straight month in October, led by growth in manufacturing and wholesale trade.
Canada’s dollar fell for a third week as central-bank Governor Stephen Poloz’s signal that interest rates may stay lower longer contrasted with a Federal Reserve that may let borrowing costs rise by trimming its bond-buying.
The Canadian dollar appreciated for the first time in five days, rising from a more than three-year low, amid speculation employment growth may suggest stronger economic improvement than the Bank of Canada indicated.
Gold futures rose as the dollar’s drop boosted demand for the metal as an alternative asset. Platinum and palladium rebounded from four-week lows after South Africa’s main utility declared a power emergency.
Canada’s dollar dropped the most since November, falling for a third straight week as concern Europe’s debt crisis will worsen overshadowed government data showing inflation and factory sales rose more than forecast.
The Canadian dollar snapped three days of gains on speculation the Bank of Canada will downgrade its economic forecasts after a government shutdown hampered growth in the U.S., Canada’s largest trading partner.